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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
JANUARY 6, 1998
GENZYME CORPORATION
(Exact name of registrant as specified in its charter)
MASSACHUSETTS 0-14680 06-1047163
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
ONE KENDALL SQUARE, CAMBRIDGE, MASSACHUSETTS 02139
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code:
(617) 252-7500
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ITEM 5. OTHER.
On January 6, 1998, the General Division of Genzyme Corporation ("Genzyme
General") announced that it will take pre-tax charges of $29.2 million in the
fourth quarter of 1997, resulting in after-tax charges totaling $17.9 million.
The charges are mainly associated with strategic changes in Genzyme General's
pharmaceuticals and surgical products business units. Genzyme General will take
a pre-tax write-off of $18.2 million for inventory and costs in connection with
the restructuring of the pharmaceuticals business unit to develop products that
are a better fit with the division's long-term strategy and a pre-tax write-off
of $8.2 million for inventory and costs associated with the discontinuation of
the development of Sepracoat[TM] for the U.S. market. These write-offs will
result in after-tax charges of $11.2 million relating to the pharmaceuticals
business unit and $5 million relating to the surgical products unit. The
remaining charges of $2.8 million pre-tax ($1.7 million after taxes) resulted
primarily from an adjustment in the sale price of Genetic Design, Inc. due to
certain earn-out provisions that were not met.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: January 8, 1998 GENZYME CORPORATION
By: /s/ David J. McLachlan
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David J. McLachlan
Executive Vice President, Finance;
Chief Financial Officer
